AXA joins international equities heavyweights

Mark Dutton

While it is little surprise international equities heavy weight Platinum has once again proved popular with financial planners, new research has revealed there is a rising star in the asset class — AXA.

The latest Assirt/Wealth Insights Adviser Market Trends report highlights advisers’ top three fund managers for placements in international equities funds.

The research showed 60 per cent of advisers chose Platinum as one of their top three, 27 per cent included AXA in this list and 25 per cent said they used Credit Suisse.

Wealth Insights managing director Vanessa McMahon said this showed the international equities sector was a highly concentrated space dominated by three managers.

“Platinum has been the clear leader for a number of years,” she said.

“What is most interesting is that AXA’s share of this market is growing at a much faster pace than any competitor, with 27 per cent of advisers now including AXA as one of their top three international fund managers, up from 20 per cent last year.”

AXA chief investment officer Mark Dutton said while some of the asset classes popularity could be attributed to Australia’s current economic outlook and its forecast slowdown, it was the advisers’ growing understanding of international equities that was fuelling its success.

“Advisers are embracing international equities progressively, and part of that is understanding the market opportunities,” he said.

“The Australian market is an excellent market, but it is a reasonably concentrated market in several key sectors, notably financial stocks and resources stocks, so for more diversification advisers are increasingly looking overseas.”

He claimed the popularity of international equities had increased over the past 10 years, so much so that portfolios were no longer being completely dominated by Australian equities, but now shared an equal mix between the two.

“It’s interesting that this trend has been occurring despite the fact that the returns on the Australian stock market have been some of the best around,” Dutton said.

“What this suggests is that investors are not being sucked into simply following past performance, but are now looking for opportunities overseas.”